Blockbuster will also stop its DVD-by-mail service by mid-December, Dish officials said. Dish will continue to offer Blockbuster On Demand video-streaming.

Over the past 18 months, Blockbuster has divested itself of operations in the United Kingdom and Scandinavia.

Dish officials said the company will continue to support Blockbuster franchise operations, relationships and agreements domestically and abroad.

“This is not an easy decision, yet consumer demand is clearly moving to digital distribution of video entertainment,” Dish chief executive officer Joseph Clayton said in the statement. “We continue to see value in the Blockbuster brand, and we expect to leverage that brand as we continue to expand our digital offer."